KARACHI: Cotton prices came under pressure in late trading on Monday as some panic selling of phutti (seed cotton) from growers and lint from ginners crept into the trading ring.

Though trading started on a firm note, selling pressure started to build up during second half of the session on reports that flood entering Sindh with reduced impact would not damage standing crops.

Consequently, growers holding back their phutti stocks in anticipation of price hike indulged in panic selling towards closing stages. Cotton prices on ready trading fell by around Rs200 per maund as a result.

Similarly, phutti prices also declined by between Rs150 and Rs200 per 40kg as growers rushed to unload their stocks they had been holding ever since rains and floods hit Punjab.

According to reports coming from Punjab, around 500,000 cotton bales have been damaged by floods and rains so far.

The Karachi Cotton Association (KCA) spot rates remained firmed at weekend level.

The following major deals were reported to have changed hands on ready counter: 2,200 bales Sanghar at Rs5,725 to Rs5,775, 1,000 bales Hyderabad at Rs5,750 to Rs5,800, 1,800 bales Mirpurkhas at Rs5,700 to Rs5,775, 2,000 bales Tando Adam at Rs 5,750 to Rs5,800, 2,000 bales Shahdadpur at Rs5,750 to Rs5,800, 600 bales Vehari at Rs5,725 to Rs5,775, 600 bales Haroonabad at Rs5,725 to Rs5,760 and 400 bales Bakhar at Rs5,750.

The following are Monday’s new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/16” micronair value between 3.8 to 4.9 NCL.

Published in Dawn, September 16th, 2014